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Policy Shifts, Legal Battles & Market Impacts
➡️US Climate Rollbacks Trigger International Backlash


This week’s reading time: 8 minutes
Welcome to another edition of The Green Executive Briefing. In under 10 minutes, you’ll be fully updated on the latest happenings in Sustainability and ESG every Tuesday at 8am EST. 🌎
We sift through a vast array of articles and data from trusted sources, distill the information, and present it to you in simple, bite-sized pieces every week. 🌍
In this edition, we'll cover:
The Paris Climate Accord (for the second time)
UN 2030 Sustainable Development Goals
The Loss and Damage Fund (which took nearly a decade to negotiate)
Just Energy Transition Partnership (JETP) deals
🌟 Spotlight: Dylan Brown
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Intro
International reaction has been pointed.…
Ali Mohamed, chair of the African Group of Negotiators, criticized the US for abandoning its responsibilities as the nation with "the largest historical responsibility for climate change." Brazil's environment minister Marina Silva, who will host the next UN climate summit, warned that America's retreat invites "civilization doom."
This "America First" approach has sent shockwaves through global climate cooperation frameworks.
Main
Supreme Court Opens Door for Climate Lawsuits
The US Supreme Court rejected a bid by 19 Republican attorneys general to halt climate lawsuits filed by Democratic-led states. Cases from California, Connecticut, Minnesota, Hawaii, New Jersey, and Rhode Island will now proceed in state courts.
These lawsuits accuse fossil fuel companies of conducting decades-long misinformation campaigns about greenhouse gas harms and seek billions in damages for climate change-related infrastructure damage.
The Court's decision signals a new era of corporate climate accountability. Oil majors now face the prospect of public jury trials examining their climate track records—a precedent that could redefine climate risk assessments across industries.
Main
EU's Green Deal Faces Internal Division
Europe's Green Deal is encountering significant pushback through the European Commission's newly proposed "Simplification Omnibus" package. The first parliamentary debate revealed stark political divisions:
EPP (center-right): Pushing for an "urgent procedure" to pause current Green Deal obligations via a "stop-the-clock" measure
S&D (center-left): Accepting simplification but warning the Omnibus "goes too far"
Greens: Denouncing the package as undermining the green transition and deterring investors
ECR (right-wing): Supporting the Omnibus but demanding more cuts ("throw a lot of directives into the trash")
The regulatory uncertainty leaves businesses in a state of confusion as compliance deadlines approach. Investment groups have raised alarms that the plan is "undermining critical sustainability objectives rather than improving reporting efficiency."
Main
US Senator Challenges EU Supply Chain Rules
Senator Bill Hagerty (R-TN) has introduced legislation targeting the EU's Corporate Sustainability Due Diligence Directive (CS3D), which requires large companies to monitor their supply chains for environmental and human rights abuses.
Hagerty's bill seeks to block the directive's application to American companies, calling it "ideologically motivated regulatory overreach" and "an affront to U.S. sovereignty." This move raises significant questions about compliance for multinationals operating in both markets and signals how climate policies are increasingly entangled with geopolitics and trade relations.
Main
Business Case for Sustainability Strengthens
New research continues to validate sustainability as a sound business strategy:
Boston Consulting Group: The cost of climate inaction could exceed one-third of global GDP by 2100, while aggressive climate action costs just 1-2% of GDP annually
Executive Survey: Over 50% of executives report sustainability initiatives have boosted sales or reduced costs, and more than 60% cite improved employee retention and recruitment
The financial case for sustainability now extends beyond risk mitigation to include energy savings, brand loyalty, talent attraction, and innovation. The growing consensus in boardrooms: doing nothing on sustainability poses greater financial and legal risks than taking action.
WRAPPING UP
The global climate and sustainability arena is in the midst of a “reset,” as major powers redefine commitments and policy tools. The stakes are rising, and so are the opportunities for companies that proactively embrace sustainability. Investors, consumers, and regulators are watching. Now is the time to align business strategy with our shared climate goals.
PERSPECTIVE: A MORE EFFECTIVE PATH FORWARD
While many are alarmed by recent policy rollbacks, there may be potential for a more effective approach to sustainability. Centralized global frameworks often create one-size-fits-all solutions that ignore regional differences and economic realities.
The business case for sustainability remains strong (as the BCG report shows), but perhaps we need a shift toward localized, market-driven efforts rather than top-down mandates. States, municipalities, and businesses are often more nimble and innovative than international bodies.
The Supreme Court decision allowing states to pursue accountability may actually demonstrate this point - local governance addressing specific grievances rather than blanket global policies.
Sustainable progress happens when it aligns with economic incentives and community needs. Perhaps this reset, however jarring, will lead to more practical, regionally-appropriate solutions that deliver measurable environmental benefits without the regulatory complexity that has complicated implementation.
The path forward isn't abandoning sustainability - it's finding more effective ways to achieve it.
P.S. When you’re ready, here’s how I can help you:
Download our Dashboard GHG Accounting Scope 1, 2 & 3. Customize it with your organization's numbers to build a compelling business case.
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GHG Accounting Strategies (Scope 1, 2 & 3)
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